01 May 2018
Philips India, the Indian arm of the Dutch major which had delisted the company in 2001, is at the receiving end of shareholder activism for attempting to extinguish about 22.3 lakh shares — all held by minority shareholders — and pay them Rs 560 per share. These shareholders believe that the price is much below the intrinsic value.
Since delisting, this is the third attempt by the Netherlands-based consumer electronics-cum-healthcare technology major to buy out minority shareholders, totalling about 37,500, with most from West Bengal.
Philips India’s minority shareholders, who together hold nearly 4% in the company, believe that the the current price should be in the range of Rs 2,000 per share at a price-earnings (P/E) ratio of nearly 16. That P/E value would be comparable to listed peers like Whirlpool India (64) and Siemens India (35). Philips India, however, said that these listed companies cannot be compared with itself since all of their business verticals do not overlap.
Philips India, the Indian arm of the Dutch major which had delisted the company in 2001, is at the receiving end of shareholder activism for attempting to extinguish about 22.3 lakh shares — all held by minority shareholders — and pay them Rs 560 per share. These shareholders believe that the price is much below the intrinsic value.
Since delisting, this is the third attempt by the Netherlands-based consumer electronics-cum-healthcare technology major to buy out minority shareholders, totalling about 37,500, with most from West Bengal.
Philips India’s minority shareholders, who together hold nearly 4% in the company, believe that the the current price should be in the range of Rs 2,000 per share at a price-earnings (P/E) ratio of nearly 16. That P/E value would be comparable to listed peers like Whirlpool India (64) and Siemens India (35). Philips India, however, said that these listed companies cannot be compared with itself since all of their business verticals do not overlap.
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